Angola: America’s brave new world

Angola: America’s brave new world

The Lobito Corridor in Angola is making progress and is no longer a pipe dream.

By Leon Louw founder of WhyAfrica and editor of the WhyAfrica magazine.

America’s strategic interest in Africa was reaffirmed by President Joe Biden’s recent state visit to Angola and Zambia in the waning days of his presidency.

During his visit, Biden pledged another USD560-million in new funding, including commitments expected to generate at least USD200-million in additional private sector capital, for infrastructure projects along the Corridor, bringing the total for U.S. investments to more than USD4- billion.

Impact on mining substantial

The impact of the Lobito Corridor on mining in Central and Southern Africa will be substantial. The importance of the Lobito Corridor cannot be understated, and even under new American President Donald Trump, it will remain of strategic importance in the US-China rivalry in Africa.

But most of all, it will ensure America has easy access to Africa’s largest deposits of copper, cobalt, nickel and other critical minerals.

Canadian company Ivanhoe Mines already shipped out copper concentrate from its Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC) in January 2024 on the 1289km long railway line known as the Lobito Atlantic Railway Corridor to the port of Lobito in Angola.

Zambian mines in on the act

In October last year, KoBold Metals, a U.S. company applying artificial intelligence to develop a critical minerals site in Zambia, signed a Memorandum of Understanding (MOU) with the Africa Finance Corporation (AFC) committing to anchor the commercial viability of the Zambia-Lobito rail project with more than 300,000 tons of copper per year from its Mingomba mine.

AFC signed MOUs in November and December totalling an additional 170,000 tons of minimum freight commitments from Zambian mining projects including from Kobaloni Energy, which is planning to construct the first cobalt sulphate refinery on the African continent, and First Quantum Minerals, one of the world’s top ten copper producers.

Angola miners to benefit

In the Moxico Province of Angola, exploration projects by Ivanhoe, Anglo American and several other mining houses are delivering exceptional results. They are all within proximity of the Lobito Corridor.

In September 2024, London listed Pensana received a USD3.4-million grant from the U.S. International Development Finance Corporation (DFC) to fund a feasibility study to double the capacity of its Longonio rare earths mine, design in-country refining capacity, and conduct test work on new ore bodies.

It also includes a USD3.2-million DFC technical assistance grant to Chillerton to support the development of a green copper mining project in Zambia.

In addition, USAID, the State Department, and the U.S. Geological Survey (USGS) announced USD2-million in technical assistance for responsible development and management of Angola’s mining sector.  In November 2023, USGS and the Angolan Geological Institute (IGEO) signed an MOU to enhance scientific collaboration between the USA and Angola.

Bidden’s first steps are small, but it is a giant leap for America. The question is whether President Trump will follow in his footsteps. But most of all, whether these massive developments will benefit Africa?

Angola: America’s brave new world